🧐 Factors Causing the Decline of the Crypto Market
1. Large-scale Liquidation
In a pressured market condition, leverage (margin) positions can be forced to close (liquidated). This adds selling pressure across the market.
2. Strong US Dollar & Rising Interest Rates
When the dollar strengthens or benchmark interest rates rise, risk assets tend to be pressured, as investors move to safe instruments.
3. Decline in Global Risk Sentiment
Many investors choose to exit volatile assets when economic news, political uncertainty, or global turmoil arises.
4. Technical Factors / Overbought
If prices previously surged too quickly, the market often corrects as a “cooling off” before continuing the trend.
